a reverse takeover, also known as a reverse merger or a reverse ipo, happens when a private company buys enough shares to control of publicly traded company, thus avoiding an ipo. once the public company is under the purchasing and ? control, it is referred to as a shell company, because all that remains of the acquired company is it's organizational structure. the shareholders of the purchasing company then swap their shares in the private company for shares in the shell company, making the purchasing entity a publicly traded company. reverse takeovers allow private companies to bypass conventional ipos, which not only require a company to raise capital before going public but also require banks to underwrite and issue shares of a company. reverse takeovers also eat up less time than the ipo process. some ipos can take several months to complete, but a reverse merger may only take a few weeks to materialize. ? is the president of murphy arts, a thriving private film studio. he wants to take the company public, but believes that an ipo will take too much time. ? sees that mohi films has been struggling recently. murphy arts buys most of the shares of mohi films and shareholders in murphy arts exchange their shares for stock in mohi films. as a result, ? becomes the president of the newly merged publicly traded company. reverse takeovers are ideal for companies that want a cheaper and simpler alternative to a traditional ipo.
- reverse takeover・・・逆さ合併→https://ja.wikipedia.org/wiki/%E9%80%86%E3%81%95%E5%90%88%E4%BD%B5
- shell company・・・